Q2. Suppose you see the following information for three bonds with annual coupon payments. The par value of the bond is $1000. (a) Calculate the price of the three bonds A, B, and C. (b) Calculate the duration of the three bonds. (c) How does the current term structure look like? (d) Suppose you would like to receive exactly $3,000 dollars in three years with no interim cash flows. That is, you want a payoff of a zero-coupon bond. Assuming that you can easily short bonds, explain how you would generate the cash flow of a 3-year zero coupon bond. How much do you need to pay today